Marc Methot saving 1.4 million dollars.

[Jamieh]

There are other ways a US Resident playing Canada or visa versa could save a ton of tax money. Signing bonuses are the easiest one.

"Article XVI of the US-Canada tax treaty states that signing bonuses paid to a resident of the US by a Canadian team are taxed at 15% in Canada, and vice versa for US teams paying bonuses to Canadian residents."

Think of Matthews playing in Toronto, he's easily taking home far more than he would in the US.

A good tax planner will have every single available deduction scoped out for their Client and the reality is the tax difference will be very little in most cases.

 

[Jamieh]

What artificial cap did the league institute for “parity” that Tavares was able to circumvent?

Not the League but good tax planning and contract structure.

John Tavares Could Save Nearly $12 Million In Taxes On His New Contract

 

[mouser]

But that gets taxed to. The Best case scenario. Which would involve getting to florida for a year or something would get you back to even. There is no scenario where even best case you end up with more money.

it’s 5 million now. Vs. 2.35 million now.

then you have the extra money which will be in an RCA which will get taxed again. The government. Doesn’t just let you avoid taxes for free. They are getting their money one way or another.

like I said. The only real person who makes this claim is Allan Walsh. He said it once. And 6/10 clients are in no state tax markets. All of his highest clients are in those markets. 1 is in Canada.

If this really were accurate and he could do these things then his clients would be in Canada

I’ll leave you with this document from Royal Bank of Canada’s wealth management group discussing how RCA’s offer significant tax advantages for athletes, especially those planning to retire outside Canada, at least temporarily.

https://ca.rbcwealthmanagement.com/...etes.pdf/02e9dda9-fe45-4241-8033-e2c516409745

 

[Legion34]

I’ll leave you with this document from Royal Bank of Canada’s wealth management group discussing how RCA’s offer significant tax advantages for athletes, especially those planning to retire outside Canada, at least temporarily.

https://ca.rbcwealthmanagement.com/documents/111482/111502/RCA's+for+athletes.pdf/02e9dda9-fe45-4241-8033-e2c516409745

Annnnd I will leave you with the countless agents GMs coaches and players who do not want to do it clearly.

I have read the documents. We have gone over this for years.

None of this changes how it works in real life. “This pamphlet out lines strategies” consult your own agent and bank. This might not work for your scenario. Etc ....

unless you forward it to methot. Then see if he agrees. The idea that a multi millionaire in Canada doesn’t know things that on basic google searches is kinda silly.

a pamphlet vs actual accountants

 

[mouser]

Annnnd I will leave you with the countless agents GMs coaches and players who do not want to do it clearly.

I have read the documents. We have gone over this for years.

None of this changes how it works in real life. “This pamphlet out lines strategies” consult your own agent and bank. This might not work for your scenario. Etc ....

unless you forward it to methot. Then see if he agrees. The idea that a multi millionaire in Canada doesn’t know things that on basic google searches is kinda silly.

a pamphlet vs actual accountants

Could you cite some GM’s and agents who don’t want their players to use a RCA? Do you know how many players on Canadian teams are using RCA’s?

The benefits of a RCA can vary drastically depending on the player’s situation. Everything from nationality, eventual “retirement” location which can be temporary, tax treaties, treatment of withdraws as regular income or pension, progressive tax brackets during playing career vs retirement, credits for taxes payed.

I’m not a tax attorney, nor are you.

I understand RCA’s well enough to recognize there’s a significant tax reduction advantage option available to players on Canadian teams that players on US teams don’t have—even while Canadian taxes are nominally higher then in the US. Not every player has the potential to benefit equally as situations differ. Still, there are a substantial and material % of players who can benefit, some to the point of lowering taxes below playing for a US team.

Whereas you seem to think it’s impossible some % of NHL players in Canada could benefit via a RCA. And by association the teams can leverage doing RCA’s for them.

 

[Legion34]

Could you cite some GM’s and agents who don’t want their players to use a RCA? Do you know how many players on Canadian teams are using RCA’s?

The benefits of a RCA can vary drastically depending on the player’s situation. Everything from nationality, eventual “retirement” location which can be temporary, tax treaties, treatment of withdraws as regular income or pension, progressive tax brackets during playing career vs retirement, credits for taxes payed.

I’m not a tax attorney, nor are you.

I understand RCA’s well enough to recognize there’s a significant tax reduction advantage option available to players on Canadian teams that players on US teams don’t have—even while Canadian taxes are nominally higher then in the US. Not every player has the potential to benefit equally as situations differ. Still, there are a substantial and material % of players who can benefit, some to the point of lowering taxes below playing for a US team.

Whereas you seem to think it’s impossible some % of NHL players in Canada could benefit via a RCA. And by association the teams can leverage doing RCA’s for them.

that is the point. They vary drastically and limit your money and your spending and where you live and when you can take it out. Money in hand is Money in hand.

the point is neither of us are tax attorneys or NHL players or the people who sign the cheques. The point is that in Toronto they literally have 16 hrs a day of hockey coverage on multiple radio. Tv. Podcasts. Heck thr leafs have their own channel.

they talk about everything for Hours. Ex players and GMs are regulars and have their own shows. Contracts and taxes and the cap are constant topics.

players who played in multiple markets have talked about tax breaks. None have mentioned RCAs as a viable option.

that’s the point. They beat the Petro horse here for 4 hours a day on Carlo Colaiacovo show. They are buddies. He had inside Intel and Petro even came on the show in the pandemic.

they talked about the taxes in Vegas. They never talked about RCAs evening it up. Why? He was retiring to St. Louis. It would have applied. They talked about how Toronto would have to offer more.

there is mountains of evidence that tax breaks
Cause a systematic advantage and people take less.

I as a person who uses the system do not believe it’s viable or the same. Or any sane person would not take the money in hand.

There is no evidence that RCAs are causing an advantage. If they wanted to make a tax adjustment and make an RCA adjustment. I wouldn’t have an issue with it.

 

[mouser]

There is no evidence that RCAs are causing an advantage. If they wanted to make a tax adjustment and make an RCA adjustment. I wouldn’t have an issue with it.

The focus shouldn’t be whether RCA’s are creating an advantage. The question that should be asked is whether RCA’s are reducing the perceived disadvantage, and if so to what extent?

I’d love to see some media coverage on how Canadian teams are leveraging RCA’s. I’m sure there are a lot of players on Canadian teams with them. Of course that involves personal and confidential info teams have to be very careful about discussing.

It’s simple and easy for the hockey media to drive a narrative of look at “tax rate in City A vs City B—this isn’t fair”. Doesn’t take a whole lot of work.

Delving into all the tax planning options players have available is a lot more complicated, takes a lot more time to discuss on air, and frankly most of the media wouldn’t care.

 

[FunkySeeFunkyDo]

Gruching, but a lot states have similar overall tax burdens when you include property and sales taxes. This list shows that the 6th most taxed to 45th most taxed states have a combined state burden between 7% and 10%. Not sure how that compares to the provinces but that’s probably not as germane as the difference in federal rates.

Tax Burden by State

 

[Legion34]

The focus shouldn’t be whether RCA’s are creating an advantage. The question that should be asked is whether RCA’s are reducing the perceived disadvantage, and if so to what extent?

I’d love to see some media coverage on how Canadian teams are leveraging RCA’s. I’m sure there are a lot of players on Canadian teams with them. Of course that involves personal and confidential info teams have to be very careful about discussing.

It’s simple and easy for the hockey media to drive a narrative of look at “tax rate in City A vs City B—this isn’t fair”. Doesn’t take a whole lot of work.

Delving into all the tax planning options players have available is a lot more complicated, takes a lot more time to discuss on air, and frankly most of the media wouldn’t care.

1.) I think you are drastically underestimating the hockey coverage in Canada. I can only speak to Toronto but there are 16 hrs a day of coverage on multiple channels 12 months a year. The leafs have a 2 hour radio show in august 5 days a week.


they cover schedule a and b entry level. Expansion rules. Escrow the new CBA and the cap and taxes
All the time. It isn’t new.

also RCAs aren’t a foreign concept to Canadians. Mosts Canadian have some form of RRSP. It’s a well known thing. It wouldn’t take much knowledge. To cover

2.) there are a steady stream of what? 50 NHL players execs and coaches who have played and coached all over the world. Who are on the radio and tv all the time. They cover everything they talk about different experiences including fans. Rinks taxes. Etc. They talk about how much more money they made in Florida. Of RCAs were viable. They would just say so. Why wouldn’t they say so. It’s not a difficult concept to say.
-A bunch of guys put their money in unique RCA and retired to Florida and saved a bunch on taxes?

option A: it doesn’t really matter that much in the real world?
Option B: everyone is lying and keeping it secret.

based on my personal experience with the program and listening to hockey players talk about their lives and uncertainty and building life after hockey. There is no way that players would want to lock their money up and hope that they could retire to X place at x time to save X taxes.

they don’t know about trades or family or jobs after hockey. If it was something that was used to any large extent. It would be talked about during the thousands of hours of content from hundreds of players.